Frasers said in a quarterly update on Monday that it also intend to increase Australand's land bank through the acquisition of more development sites in Sydney, Melbourne and Brisbane.

Award-winning Central Park in Sydney

"Our key goals for Australia is to maintain momentum in delivering development pipeline and focus on strategic review of Australia business," Frasers Centrepoint's group chief executive, Lim Ee Seng, said.

Frasers' strategic review for its assets, including those in Australand, was to optimise asset productivity through its REITs in order to "unlock and release capital from assets". The move would also strengthen its balance sheet through a decrease in gearing.

The sale was still conditional on an approval from the Foreign Investment Review Board.

Mr Lim said the group would also continue to expand residential development in Australia, particularly Sydney and Melbourne which had strong housing markets.

"There will be strong activity in these areas in the next 12 to 18 months," Mr Lim said.

Focus

He said the focus for Australand would be on residential projects as yields on office and industrial assets tighten in Australia.

"We will be looking for more complex assets to unlock in Australia," Australand's chief executive, Bob Johnston said.

"The focus will be on key cities, Sydney Melbourne and Brisbane and less in the Perth market."

Mr Johnston said Australand has tenders with the government for both residential and industrial developments.

The group also reported on Monday that Australand was on track with its targets, having completed over 750 apartments in the first half of the 2014/15 year. It has also released over 1200 land lots and apartments for sale in the same time, mainly in NSW and Victoria.

The Sydney developer has 1650 units planned for release in the next half of the year. Australand has unrecognised residential revenue of $S1.8 billion ($1.7 billion) at March 31.

Potential

Australand also delivered five commercial and industrial facilities in the first half of the year worth $S121 million ($115 million) and has another 96,000 square metres of commercial & industrial development potential.